Japans Second-Largest Bank SMBC to Launch Stablecoin in Partnership with Ava Labs and Fireblocks

Sumitomo Mitsui Financial Group, which operates Japan’s second-largest bank, SMBC, is gearing up to launch a stablecoin in collaboration with Ava Labs and Fireblocks, according to a report from Nikkei.

The financial institution intends to test the project in the latter half of 2025, with the token launch slated for 2026.

Ava Labs will develop the blockchain infrastructure, while Fireblocks is tasked with creating a management system for the «stablecoin.»

Additionally, SMBC has partnered with the local IT firm TIS for technical support during the testing phase.

This isn’t the bank’s first venture into blockchain and tokens. In 2022, SMBC established the Token Business Lab in partnership with HashPort, focusing on the development of NFT services. Later, they conducted tests on issuing soulbound tokens for identity verification.

In September 2024, SMBC announced plans to launch a pilot cross-border project to create stablecoins in collaboration with two other major Japanese banking institutions—Mitsubishi UFJ Financial Group and Mizuho Financial Group.

It is worth noting that in February 2025, media reports indicated that Japan’s Financial Services Agency would re-evaluate cryptocurrency legislation, including the potential for classifying digital assets as financial products alongside securities.